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Comex Trading Signals and Market News – 20 January 2016

INTERNATIONAL COMMODITY NEWS :

Copper prices jumped to a more than one-week high in Europe trade on Tuesday, after China’s quarterly economic growth met expectations, calming fears over a deeper than expected slowdown.Official data released earlier showed that China’s economy grew 6.8% in the fourth quarter from a year earlier, the weakest pace of growth since the first quarter of 2009.

Oil prices pushed higher in Europe trade on Tuesday, after China’s fourth quarter growth met expectations and sparked hopes for more stimulus. Official data released earlier showed that China’s economy grew 6.8% in the fourth quarter from a year earlier, the weakest pace of growth since the first quarter of 2009. That was in line with market expectations and down from growth of 6.9% in the previous three months.

Gold futures inched lower on Tuesday, as a recovery in global equity markets dampened demand for safe-haven assets.Global stock markets rallied on Tuesday after China’s fourth quarter growth met expectations and sparked hopes for more stimulus to support the world’s second largest economy.Gold for February delivery on the Comex division of the New York Mercantile Exchange dipped $2.00, or 0.18%, to trade at $1,088.80 a troy ounce by 10:05GMT, or 5:05AM ET.

ECONOMY NEWS :

China is expected to report its weakest quarterly economic growth in nearly seven years on Tuesday, adding pressure on policymakers to take bolder steps to ward off fears of a sharper slowdown that are jolting global financial markets.Chinese leaders have been struggling to put a floor under the economy, even as a fresh plunge in its stock markets and yuan currency have stoked worries from Washington to Wellington that conditions may be rapidly deteriorating.

The International Monetary Fund cut its global growth forecasts for the third time in less than a year on Tuesday, citing a sharp slowdown in China trade and weak commodity prices that are hammering Brazil and other emerging markets.The Fund forecast that the world economy would grow at 3.4 percent in 2016 and 3.6 percent in 2017, both years down 0.2 percentage point from the previous estimates made last October. It said that policymakers should be considering ways to bolster short-term demand.

Global financial markets seem to be overreacting to falling oil prices and China, the chief economist of the International Monetary Fund said on Tuesday. Maurice Obstfeld also said it was critical that China is clear about its overall policy strategy, including its currency.”It’s not a stretch to suggest that (markets) may be reacting very strongly to rather small bits of evidence in an environment of volatility and risk aversion,” Obstfeld said in a news conference held after the IMF cut its global growth forecasts for the third time in less than a year.